identify the true statements about managing cycle stocks. (Check all that apply.) Multiple select question. The primary driver of cycle stock is the order quantity. Reduction in order costs results in an increase in cycle stock. Offering the lowest possible price per unit regardless of order quantity would result in smaller order quantities. One way to reduce total average inventory is to reduce the order quantity.

Respuesta :

The true statements are:

  • The main driver of the cycle stock represents the order quantity.
  • If the less possible price per unit is offered irrespective of the order quantity so this should have resulted in the fewer order quantities.
  • In order to decrease the overall average inventory,  we have to decrease the order quantity.

The stock cycle should be managed by:

  • Order quantity.
  • Few possible prices per unit so that there is a fewer order quantity.
  • When the overall average inventory is decreased so the order quantity is also decreased.

But it should not be managed by the decrease in the cost of the order via increment in the cycle stock.

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